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The economics and business models of prescription in the Internet


  • Pierre-Jean Benghozi

    (CRG - Centre de recherche en gestion - Polytechnique - X - CNRS - Centre National de la Recherche Scientifique)

  • Thomas Paris

    (CRG - Centre de recherche en gestion - Polytechnique - X - CNRS - Centre National de la Recherche Scientifique)


Our premise is that the mechanisms at work in distribution and intermediation at stake in the business models existing on Internet should be assessed in terms of a prescription economy. By analyzing the markets in terms of prescription, i.e. the capacity of a firm to transform the potential request of a customer into a specific proposal of products, we can investigate the structure of a product or service supply, the decision-making process involved in purchasing, market configurations, and business strategies and models. Analyzing intermediation and information markets in terms of prescription means considering three-pronged markets where prescribers are not simple intermediaries but third parties : they act alongside producers and consumers – not between them – in order to structure the product or service supply or to assume responsibility for some aspect of the consumer decision. If we proceed on this assumption, we can identify the market strategies and structures that characterize a prescription economy.

Suggested Citation

  • Pierre-Jean Benghozi & Thomas Paris, 2007. "The economics and business models of prescription in the Internet," Post-Print hal-00263198, HAL.
  • Handle: RePEc:hal:journl:hal-00263198
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    References listed on IDEAS

    1. Daniel F. Spulber, 1996. "Market Microstructure and Intermediation," Journal of Economic Perspectives, American Economic Association, vol. 10(3), pages 135-152, Summer.
    2. Jean-Charles Rochet & Jean Tirole, 2014. "Platform Competition in Two-Sided Markets," CPI Journal, Competition Policy International, vol. 10.
    3. Hackett, Steven C., 1992. "A comparative analysis of merchant and broker intermediation," Journal of Economic Behavior & Organization, Elsevier, vol. 18(3), pages 299-315, August.
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    Cited by:

    1. Hadida, Allègre L. & Paris, Thomas, 2014. "Managerial cognition and the value chain in the digital music industry," Technological Forecasting and Social Change, Elsevier, vol. 83(C), pages 84-97.
    2. Bazen, Stephen & Bouvard, Laurence & Zimmermann, Jean-Benoît, 2015. "Musicians and the Creative Commons: A survey of artists on Jamendo," Information Economics and Policy, Elsevier, vol. 32(C), pages 65-76.


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